Margin Outlook
Q: Can you clarify expectations for margin expansion into 2025?
A: Management expects underlying margin expansion in 2025 to be similar to 2024, which was extremely strong. " However, reported margins might be slightly lower due to headwinds like commodities and margin dilution from M&A, but they still anticipate above-average underlying solid waste margin expansion. "

Volume and Pricing Expectations
Q: How are you viewing the macro environment and its impact on volumes and pricing?
A: Underlying volumes are positive, but shedding of lower-margin contracts will continue to impact reported volumes into 2025. " Management plans for mid-single-digit price plus volume growth in 2025, with a focus on price-led organic growth. "

Capital Expenditure Plans
Q: How should we think about growth CapEx next year and free cash flow conversion?
A: While detailed guidance will be provided in February, management expects free cash flow conversion to be similar to 2024. " Incremental contributions from RNG projects won't be meaningful next year due to timing, and commodity prices may be a slight drag, potentially offsetting each other. "

M&A Strategy
Q: What are your plans for M&A opportunities in 2025?
A: The M&A market remains robust, with a continued focus on core solid waste opportunities. " Management is comfortable exceeding their historical acquisition range of $150 million to $250 million and sees around $4.5 billion in private company opportunities. "

Integration and Culture
Q: How are you managing integration of acquisitions while maintaining company culture?
A: With reduced turnover and a decentralized operating structure, the company is well-positioned to integrate more acquisitions than ever. " Focus on rapid assimilation and local management helps avoid cultural dilution and drives performance improvements. "

Chiquita Canyon Update
Q: Can you provide an update on the Chiquita Canyon landfill situation and spending plans?
A: Significant progress has been made, with capping nearly complete and regulatory oversight returning to normal. " Expected spending for Chiquita in 2025 is estimated to be in the range of $50 million to $75 million, down from 2024. "

Cost Inflation and Pricing
Q: What is the outlook for cost inflation and its impact on pricing strategy?
A: Cost inflation continues in the 4% to 5% range, with wage inflation at the high end or above. " This necessitates an outsized spread between price increases and headline CPI, influencing pricing strategies for 2025. "

Landfill Gas Investments
Q: How are landfill gas investments progressing, and what contributions are expected?
A: Four new facilities are being brought online in 2024, with minimal impact this year. " Larger projects will come online at the end of 2025 into 2026, with significant contributions expected by 2027. "

Commodities Pricing Impact
Q: What is the impact of recent commodity price movements on the business?
A: Average OCC prices in Q3 were $139, lower than the expected $145. " A 10% move in the commodity basket impacts revenue by approximately $25 million. "

E&P Business Performance
Q: Can you provide an update on the performance of the E&P business?
A: The E&P business is performing well, with a run rate of $550 million, representing about 5.8% to 6% of total revenues and 8.2% of EBITDA. " Recent acquisitions have strengthened their position, and margins remain strong due to focus on disposal and transfer services. "

RIN Prices and EPA Targets
Q: What are your thoughts on RIN prices and potential EPA target resets?
A: RIN prices are inherently uncertain; therefore, the company uses a hybrid strategy with opportunistic hedging at around $3. " They don't have better predictions than others but mitigate risk through their approach. "

Storm Impact and Opportunities
Q: What opportunities arise from recent storms and hurricanes?
A: While initial impact is negative, there is potential for increased landfill revenue in the following quarters if landfills are well-positioned. " After Hurricane Ian, they reported about $15 million in incremental revenue over four quarters; similar or higher impact could occur but it's too early to tell. "

Churn Rates and Price Retention
Q: How are churn rates in non-franchise markets affecting price increases?
A: Churn rates continue to improve, with voluntary turnover down to about 13.5% to 14%. " They target retention of price increases north of 85% to 90% and are achieving those numbers. "

Service Interval Trends
Q: Can you discuss recent trends in service intervals?
A: Service intervals, particularly for small container customers, continue to improve. " Service decreases related to economic factors are less of a headwind than in previous quarters. "

Election Impact Concerns
Q: Are you concerned about potential changes due to the upcoming election?
A: Management is not overly concerned about the election outcome. " They have operated successfully under various administrations and believe they can adapt to any regulatory changes. "